Sports Media

A Throw Worth Millions

Why do MLB players make so much money?

Twenty-nine baseball players have signed contracts worth more than Kobe Bryant’s deal with the Lakers.

Baseball, by nature, demands less physically than other popular sports in the US (basketball, hockey, football). So how come baseball players make significantly more than the others?

For one, there is no salary caps or max contracts allowing free agents to demand as much money as they desire.

In 2014, Giancarlo Stanton signed the biggest sports contract in history with the Miami Marlins, $325,000,000 for 13 years.

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Chicago Cubs all-star pitcher Jake Arrieta (seen below) demanded a 7-year contract worth $200 million dollars in order to stay with the World Series champions. Why? Because that’s what players of his caliber are making.

MLB: Chicago Cubs at Los Angeles Dodgers

It makes us ask questions. How does the MLB have so much money to spend on one player? Are player contracts the result of inflation in that market?

Here is a list of the largest sports contracts in history. MLB players blow every other professional athlete out of the water.

TV provides the big bucks…

The development in media over time has been the biggest component of the rising market of professional sports. Television is a huge reason why the MLB is worth billions. Baseball is notorious for being a time-consuming sport, the average game lasts two hours and 56 minutes. That means a lot of TV time which means a lot of advertisement time. Advertisers pay to show their products on television,  the MLB consumes a certain percent of what the TV provider makes off those advertisers.

al-tv-deals

If the MLB did not demand some of the income given to TV providers from advertisers, there would be unfair distribution, which is why the MLB unionized a players demanded their fair share.

Baseball is played in a series, typically a three-game series. This means more television time, which means more money. The average MLB team plays 162 games a season.

As the saying goes, time is money.

Sources:

Marketplace

ForTheWin

Wikipedia

Sports Management

Expanding the Strike Zone

Fox Sports

Baseball Reference 

Heavy

CBS Sports

Advertisements
Wall Street

Energy, YouTube, and out best day in 8 months

Today was the day we broke the losing streak that has lasted eight-months. This up in the economy has given the energy and financial sectors the boost they needed. The energy sector has suffered greatly with the conflict surrounding oil and the concerns for the environment. Our fear of conflict has driven stock number for energy companies to all time lows until today. This comes around the same time that President Trump has stated he will end the Screen Shot 2017-03-28 at 9.29.48 PM.png“war on coal”. The public has used social media platforms to show their distaste for conflict and their eagerness to have conflicts resolved. The government taking this voice into consideration has opened more venues for energy, such as coal.

 
The market seemed to level this week but upon closer inspection one can see the fall in YouTube and online video sharing websites’ stocks. This may seem unimportant to us, after all the economy does not depend on YouTube. However this represents a larger problem for our economy.  YouTube’s recent expansion into the larger movie and TV show edge of media has proven to be unsuccessful. In a world where online streaming is our life source, YouTube has failed epically. Large TV conglomerates are looking to take over this platform and use it was a way to advertise more and raise their stock prices through newly acquired customers. Screen Shot 2017-03-28 at 9.16.18 PM

 

Social Media

Snapchat’s Rise To Success

By Kate Lewis

There are several social media platforms that dominate social media usage, or “audience share,” and Snapchat is certainly one of them. 158 million people use snapchat daily. That’s a lot of snaps. In fact, on average there are around 2.5 billion snaps sent per day.

Snapchat has gained quick success since first launching in 2011 by a group of students at Stanford University. Unlike originally text-based platforms such as Facebook or Twitter, Snapchat is a mobile application that is primarily based in sending image and video content. They can select a set amount of time between one and ten seconds for a recipient to view the content before it auto-deletes, disappearing for good. Snapchat has evolved into a very imgresinteresting, yet fun, social platform and people and organizations all over the world are beginning to incorporate it into their everyday lives.

Businesses are using the ghost-symboled application to promote themselves, giving the users of the social media app an opportunity for interactive engagement as well as creative content. Snapchat created a way for people to share photos freely and easily. Unlike Facebook or Instagram, these photos are not permanent and not out their on the Internet for the whole world to see.

Its freedom, its engaging products, and its “in the moment” sharing nature, has created a powerful new revenue and motivation for many to switch over to Snapchat as heir pre feed method of social media.

What led to Snapchat’s success? To begin, Snapchatsnapchat-survey-results-500x1024 realized that the key to its popularity was to target the millenniums. Over 71 percent of Snapchat uses are under the age of 35. Younger populations drive trends because they are more susceptible to adopt new platforms.According a project conducted by the Pew Research Center, as of September 2009 73% of online American teens ages 12 to 17 used an online social network website, and that statistic has continued to climb upwards.

Second, users can be selective when broadcasting their life. Disappearing messages and videos provide just enough information for users to share in that moment, a 24-hour moment in Snapchat terms.

Third, Snapchat is a mobile focus, and was specifically designed for mobile. Not many other social sites are the same.

Snapchat was able to target there audience, study that audience, and take advantage of growing trends in mass communication. Snapchat is a great example of a company who understands their audience, one 10-second video at a time.

Sources:

DMR

Marketing Land

Pew Research Center 

Advertising and Commercial Media

The Branding Boost

By: Sam Fowler

Oprah uses Weight Watchers, Beyonce drinks Pepsi, and Tiger Woods wears Nike.

Celebrities seem to link themselves to products the moment they become famous, and even more so, brands link themselves to celebrities.

Celebrity endorsement now makes up about 20% of all television commercials and 10% of money spent on advertising is spent on celebrities. This is pretty impressive considering how expensive this little marketing trick is.

Nike, for example, spends 475 million dollars on athlete endorsements annually. This endeavor typically results in a 4% increase in sales, which is significant in the advertising world.

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Celebrities often even make more money from their endorsements than their intended career, which is quite interesting. Perhaps singers are just advertisers that sing on the side.

And their impact on American economy is even more significant. Michael Jordan appears in advertisements for Nike, Coke, Hanes, Gatorade, and more and has an impact worth on the American economy of almost 14 billion dollars.

In choosing a celebrity to endorse a product three major checks must be completed:

-attractiveness

-trustworthiness

-likeability

Debate about which is most important is still ongoing, but a perfect trifecta is a grand slam. Take Selena Gomez and Pantene (as also shown in my previous post):

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Not only is she likable to kids and adults alike considering she falls in both spheres, she is a trustworthy informer as her hair is always on point. Not to mention she is gorgeous which never hurts.

The Davie Brown Index is a rating system that puts these checkmarks to the test on a 1-100 point index on marketing capability of a celebrity. Beyonce scored a 81.5, for example, in 2008. I am sure it has even gotten higher since than as I heard some soft “Beyonce for President” remarks last year as a joke (though she does sport red white and blue).

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We live vicariously through celebrities, so much so that the media never fails to update us on their daily lives. In this way, getting recommendations from celebrities oddly feels like we are getting advice from a family friend.

Sources:

Psychology and Marketing 

American Marketing Association

Journal of Marketing Management

Celebrity Endorsements, Harvard Business School

New York Times

Wall Street

President Trump on Wall St.

What happens when we hear that Wall Street has ended on a historically low note?

Some of us may panic when reading this. We being jumping to the worst conclusions, others of us may feel indifferent. After all, what can one bad day on Wall St. do to us? The truth is that this 1.24% drop does not affect our everyday lives. It won’t dramatically change our everyday expenses over night. This drop instead gives us a marker of where our country is economically and how our newly elected President’s economic plan is working in real time. Screen Shot 2017-03-23 at 12.16.53 PM

President Trump on Wall St.We have suffered the biggest loss in the stock market in 110 trading days. We have suffered a 1.24% loss or a loss of 29.45 points. What does this mean for the general population?  Many people expected to see a massive spark in the economy with our new President. Suddenly the fear that President Trump’s economic development may be overshadowed by the political controversy surrounding his presidency is all too real. Issues such as health care and immigration are causing a delay in the grand economic plan that President Trump has to “make America great again”.  Everyday more and more issues are brought up, proving this to be a very controversial presidency. The opposing forces are given a large presence by social media, which are using different platforms to express their disapproval and organize movements against our President.

The corporate and financial world observe these movements and makes decisions with the general opinion in mind out of fear of being called out or boycotted. Our society is in one large vicious cycle: the public outcry over President Trump’s policies impacts the movement of our corporate world. It is safe to say that when we hit a historical low on Wall Street, our country is no longer happy.

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Social Media has a large impact in the world of finance. Large conglomerates and corporations mean goal is to make money. The money they receive comes from us, the general public. Our public distaste for President Trump and all his associated companies has frightened investors. Although we expected a large economic revival the truth is we are suddenly faltering. The most noticeable example of this is the dropping of Ivanka Trump’s fashion line. Large stores such as Nordstrom and Neiman Marcus have stopped doing business with Trump’s daughter as a sign or protest and to not suffer the backlash of the public. Since the election of President Trump there has been a large amount of public displays of disapproval. As a population we have taken to our social media platforms and expressed our opinions. Large companies see this and take note, making plans to support the popular opinion and not lose the favor of the general public.

By Natalie Rocha 

Sources:

https://www.theodysseyonline.com/donald-trump-pawn

http://www.usatoday.com/story/money/markets/2017/03/21/stocks-one-percent-drop/99457106/

http://www.businessinsider.com/companies-that-dropped-ivanka-trump-2017-2/#nordstrom-1

http://lisamerriam.com/amazon-review-trolling-ivanka-trump-brand/

Advertising and Commercial Media

Superbowl : The Super Sale

 

By: Sam Fowler

Each new media revolution brings a revolution in advertisement. Once upon a time, ads were black and white in newspapers. Such as this gem here from a 1898 newspaper:

hair like this

Then came black and white classic and traditional TV ads like this simple 1950’s ad praising a “soft feminine look”:

Then some color was added in the 80’s keeping that same cheesy vibe:

Now every seemingly annoying ad is a masterpiece compared to old ads. TV has become the greatest master of advertising to to the large advantage of having movement, sound, and great aesthetic appeal.

Here is a shampoo ad from 2017. Just a tiny bit better. With a little social commentary with the modern feminist “Strong is beautiful” statement. Needless to say, we have come a long way.

Unfortunately for advertisers (and fortunately for consumers) loopholes such as time shifting have become disadvantages for tv advertisement as noted by John Vivian.  This has caused some companies to rethink advertising opportunities.

While TV ads are still more successful than internet ads due to existing brand recognition and that newer brands advertise on the internet, it is predicted that that will change soon.Even though it’s clear, due to modern media convergence, that the internet is becoming the new pump house for advertisements, advertisers are still reluctant to switch as they still view Tv as the main platform to build brand recognition.  However, a new future for televised advertising needs to be that ads are entertainment in themselves, as Vivian notes as well, or consumers will continue to find loopholes.

There is one day of commercials, however, where they expand appeal and entertainment of programming rather than clutter it. This is the Super Bowl. Oh the Super Bowl, a true American holiday.

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The magnitude of the NFL and the Super Bowl and be wrapped up in this quote from the movie Concussion:

“ The NFL owns a day of the week, the same day the church used to own.”

For one nation under God, we might as well become one nation under football. And  one American value that permeates through this day in perfect patriotism?- consumerism .

Every ad showed during the Super Bowl costs 5 million dollars. 5 million dollars for a Super Bowl commercial is an all time high but it is still a bargain for the viewership advertisements will get. Production costs are also roughly the cost of airtime. The Super Bowl has become a platform for audio-visual advertising to reinvent itself every year to exceed the success of the previous year.

However, It wasn’t until the 80’s actually that commercials actually became part of Super Bowl appeal. While 1979 introduced the Mean Joe Green”Catch Kid” classic Super Bowl commercial, 1984 brought an Apple commercial that changed direction of Super Bowl ads and advertising in general to become plot driven rather than a direct pitch to buy a product or obvious ploy of brand recognition. While slightly terrifying , it does carry a message about the future and plays against its rival at the time- IBM.

This idea of commercials not only boasting a product but also bringing weighted messages and meaning was heightened even more this year in the 2017 Super Bowl commercials. With a particularly heated political climate at the moment and a large mass audience of the most stereotypically American Americans out there, companies saw their shot on screen as being more than just a catchy product boost. Here are a few of the commercials from this year packed with political and social commentary:

The first are two commercials commenting on the political climate surrounding immigration. The second Lumber commercial has direct allusion to Donald Trump’s “wall” he wanted or wants to build on the U.S. Mexico border which has been a topic of heated debate and scrutiny of Trump

The last one titled “Daughter” brings feminism to the gaps between a male dominated game and caters to a male audience while promoting gender equality in a powerful way. Now thats no silly coke or pepsi commercial from the 70’s or 80’s.

Advertisements are becoming not only a consumer tool but a social tool to sell ideologies. Milton had a theory of the marketplace of ideas.Milton’s marketplace is now one in which modern television ads shine beautifully .

And now for your viewing pleasure after a long read- the most adorable Super Bowl ad out there.

Sources used:

Time Magazine

Forbes Magazine

John Vivian on Mass Communication

Internet Versus Television Advertising

Social Media

Cash the Future of Mobile Payments

By Kate Lewis

We all have experienced that moment when you are walking up to the grocery store to do your weekly shopping, when all of a sudden you are attacked by the girls in green vests. Girl Scouts, more specifically Girl Scout Cookies, are hard to resist and the one reliable excuse to get out of buying them has always been, “I’m so sorry I don’t have any cash with me!” Easy way out, and most (some) of the time a valid reason.

But in today’s technological society that is not the case anymore.

IMG_ThePush_2014-0514_Girls.jpg“That’s ok! We take cards on the square!”

Square? Since when in the world do Girl Scouts have Square?

Digital-Payments technology is transforming our daily lives as it changes our contemporary financial system. Unlike cash or a credit card, a mobile phone can display all interactive payment details, and only requires the download of an app and a link to a bank account. As Paypal President David Marcus calls it, “Money 3.0.

passbookMobile payment systems are divided into many types such as SMS payment, NFC payment and payments via mobile app. They benefit both customers and businesses. For customers, conveniences and security are the two primary benefits.
For businesses, it costs a lot less to use a mobile card reader or barcode scanner than to have a credit card terminal from a bank, and encourages a lot more engagement with the customers as the purchase process becomes easier.

 

The following are some of the most popular mobile payment systems being used:

Square

Not just for Girl Scouts. Square allows merchants to accept mobile credit card payments via  plastic card swipe that can be inserted into the headphone jack.

Venmo

Venmo launched in 2013. Friends use Venmo to split payment on things, and it is becoming true that if you do not have Venmo to pay someone back, then getting cash from that person could be extremely inconvenient. People also do not just love the payment concept of Venmo, they like the fact that you can have a sneak peek at what transactions everyone else is making. Simply link up a debit card, find your friends, and there you have it. Venmo is currently known as the most convenient and easy-to-use option of the current mobile payment apps out there.

Google WalletMobile-Payment-Solutions-Evolution-750x410

Google Wallet allows people to send and receive money from any mobile device. It also allows the user to store their credit cards and other payment methods on their phone, all in one app.

Apple Pay

Apple Pay is a mobile payment and digital wallet application. It lets users make payments with any Apple product in just a touch. It is a safe, and private way to hold your wallet on your phone.

 

No other online channel is driving retail sales and referral traffic like social media. In the last few years, the merging of social media and payments has increased drastically, and will continue so long as our technology develops. We could one day see a financial system that is completely wiped away from the use of cash. Cash is expensive, and a lot harder to keep track of. Each year the U.S. Bureau of Engraving and Printing spends $660 million producing new dollar bills. Imagine what else could be done with that money if it weren’t spent printing $$$.

Choosing a payment method relies on one’s personal view of the security and convenience of the transaction method. However as digital-payments technology continues to develop, we may begin to see a financial system that shifts away from the cold hard cash and plastic system we have known for so long, and venture into the world of virtually-driven transactions.

Sources:

Bureau of Engraving and Printing

Business Insider

Buzzfeed

Forbes

Social Media Week

TIME/Money.com